New terms have been added to the glossary:

TIMESHARE RENTALS

In the periods during which the units operated under a timeshare or “rotational enjoyment” system are “unoccupied”, the units are often rented out by their owner to third parties (tourists) and the holders of rights of occupation can thus obtain an extra income.

The legal nature of this kind of “rentals” in Spain may be subject to debate both on a practical and on a theoretical level, but the issue is not without importance as, if we are talking about a “seasonal rental of a dwelling house”, we may find that the lessor has the obligation to demand that the renter pay a deposit amounting to two months’ rent (despite the rental period being one week), which does not happen in the case of occupation of a tourist unit.

The Urban Lease Act 1994 (amended on 04/06/13) does not regard as a lease “the temporary assignment of use of a dwelling house in its entirety, furnished and equipped for immediate use, marketed or promoted through tourism channels and rented out with a view to making a profit, where the house is subject to a specific system arising out of the regulations of its own sector”.

The difference is that in a, let us call it, “ordinary rental”, the building the subject of the lease is a dwelling house, be it intended for use as permanent or as temporary living accommodation, whereas two essential elements must be present in the occupation of a tourist accommodation unit: (i) the accommodation unit itself, whether from an architectonic point of view it is a room, an apartment or a singular dwelling house; and (ii) the service inherent in tourist accommodation units, such as reception, cleaning, etc., all of which must also be situated in a “tourist accommodation resort” and managed by one only operating company; both of them (the resort and the company) being registered with the relevant tourism registry as guarantee that they both meet he requirements of the sector’s tourism regulations.

TIMESHARE BRANDING

A prestigious, well known brand is currently one of the most important factors to marketing success, and this obviously applies to the holiday accommodation industry.- Large companies have, through their respective brands, made this one of their main selling arguments. Small companies, however, with a lower economic capacity, can hardly compete by themselves in this sector, which may be the most representative of a globalised industry. A reaction to that is the “branding” concept, i.e. the creation of a common brand with widespread media exposure which comprises several companies of the sector, whether on such companies’ own initiative or as a result of the establishment of a brand by one only company whose business is precisely to allow others to use the common brand according to specific rules and for valuable consideration to its owner.

A seminar entitled “New Horizons for your business” took place in Marbella on the14th February 2013 which, with specific focus on the introduction of new holiday products in tourist accommodation establishments, studied the recently-enacted European rules governing the marketing of such products and the provision of financing to potential consumers. “Fractionals” and “fractional ownership” were the specific subject of the Seminar.

The Seminar had been organised and sponsored by FNTC and Lizarza Abogados and was attended by over one hundred operators in this Sector, including developers, hotel businesses, tourist operation companies, marketers, lawyers, advisors and financial providers specialising in consumer financing.

Philip Broomhead (FNTC

Lisa Migan from FNTC talked about the “simple paths” to marketing fractionals and Philip Broomhead, also from FNTC, went on to explain the operation of this product according to international practice and, particularly, Anglo-Saxon legislation.

Fracisco Lizarza spoke in depth about the legislation common to holiday products, with special reference to fractionals, and the aspects common to all of them from the point of view of the specific laws on consumer protection, the tourist establishment regulations and the legal structures providing a legal basis for such products.

Paloma Marín

Paloma Marín, from Soluciones Legales Integrales, expatiated on the matter of applicable legal regulations by commenting on the latest changes to Spanish legislation affecting these products, with special reference to the legal changes introduced in 2012 in respect of VAT, modification of the Special Levy on Non-resident Companies which own real property in Spain and a specific description of the application of VAT in points systems following the Judgement rendered in the “McDonald” case by the Supreme Court of Justice of the European Union.

In the second part of the Seminar, Ian Goddard made a presentation on marketing techniques while John Baker (Money Leisure Limited) and Julian Nutley (Shawbrook Bank) talked about the provision of financing to “fractional” consumers, which is mostly aimed for British consumers.

Vista central de asistentes

Chris Sheldon (Interval International) and Ovidio Zapico (RCI) elaborated on the benefits of exchange, the latter stressing the positive results in terms of costumer loyalty, business income and creation or preservation of employment generated by this Sector

The Vice-President of Málaga’s Provincial Council, Ms Maria Francisca Caracuel, attended the closing of the Seminar and pointed out during an informal conversation with those present that the Council supports all tourism-related activities.

A quick guide to know more about the “new holiday products” through the words, abbreviations, acronyms, terms and expressions commonly used in the vacation industry. For further information, see the Glossary of new holiday products, mixed used and enjoyment in tourist resorts: